I know alot of people were having trouble with this, so here's what I did and it worked. At first i installed Fedora and just downloaded all the updates, yea my system wouldnt boot XFree86 at all... After a clean install this is what i did:

1) Download only the Up2Date update using Up2Date.
2) Download only the new Kernel update.
3) Restart machine.
4) Download all the updates that have XFree86-...
5) Up2Date will give you an error, saying the XFree86 does not have a valid GPG signature. Click OK to continue.
6) While installing XFree86, Up2Date will give you an error. "XFree86 - Fatal Error. Couldnt Unpack RPM" or something like that.
7) Go to http://fedora.redhat.com, and choose to download the actual RPM of XFree86 and install it yourself, just by double-clicking on it, and choosing install.
8) After this run Up2Date again, and install all the rest of the XFree86 updates.
9) Restart your machine.
10) Download the rest of the updates.

For Some reason, you can't install the Kernel, XFree86, and the other updates in the same time.

Hope it Helps...